HOMEBUYER TAX CREDIT RECIPIENTS CAN'T E-FILE

Posted by Mai Ling at MSN Real Estate on Monday, Jan 25, 2010

It's not like I would ever say that free money isn't worth it, especially when it's a tax credit of up to $8,000. But I still doubt that first-time homebuyers who get their chunk of the housing kick-start are jumping for joy that they won't be able to e-file come April.

As if it's not hard enough filing the first year after buying a home, these taxpayers also have to send even more documents in to complete their 2009 taxes. The rest of us could very well be jumping for joy, though, because the push behind this new rule is due to the high number of suspicious claims for the tax credit, according to Move.com. I, for one, am 100% behind the Internal Revenue Service trying to catch those recipients who wrongfully took the money.

And for those of you who followed the rules, just remember, all you have to do is prove it. Your most important step is to fill out the new IRS Form 5405, "First-Time Homebuyer Credit and Repayment of the Credit," which also can be used by those who bought a home in 2008 and are amending their taxes for that year.

Elizabeth Razzi with the Washington Post sums up what else you'll need to send in:

Copy (keep your originals) of one of these documents to back up claim to the tax credit.

-- copy of your HUD-1 settlement statement, complete with dates and signed by all parties.

-- Mobile-home buyers can send in a copy of their signed, dated and fully executed sales contract.

-- New home buyers who don't have a HUD-1 settlement statement must send in a copy of the Certificate of Occupancy.

All of these documents need to show names, dates, addresses, signatures and prices.

And just because you can't e-file doesn't mean it's going to be all that much more difficult. You still can use the IRS's online tax preparation forms and software such as Turbo Tax; you just have to print it all out and mail it in.

For current homeowners who have patiently been waiting for more information about the $6,500 move-up credit, the Los Angeles Times notes that you also can use Form 5405 for either your 2009 or 2010 taxes and that the credit is "inelegantly dubbed the 'long-time resident of the same main home.'"

A note from Bartek Real Estate ---- CONSULT YOUR CPA FOR ASSISTANCE IN FILING FOR THIS TAX CREDIT.

7 WAYS TO IMPROVE YOUR HOME'S SELL-ABILITY

In this tough market, it's more essential than ever that your home stand out, but in the right way!

1. Maintain neutrality -- Customizing your home is great if you plan to stay there, but extreme colors and themed rooms can scare off potential homebuyers. Using neutral colors on the walls can help prospective buyers create their own vision for the house.

2. Less is more -- Even though you have not moved out yet, removing some of your furniture can help the house move off the market and can make it appear more spacious. It can also provide clear walkways.

3. That "new house smell" -- In preparing to show your home, you should avoid strong smells. Make sure to take out the trash and be mindful of what you cook in the days leading up to a showing. If you have pets, keep an eye on the litter box. Any odor that is too strong could send potential homebuyers running out the door.

4. Pay attention to the details -- If you never got around to that kitchen or bathroom makeover, then you can make some small inexpensive changes to spruce things up. Replacing the hardware on cabinets is a quick way to improve the appearance of older looking fixtures. Upgrading small items such a light switch and outlet covers can add a nice touch.

5. Maximize your "curb appeal" -- The front of your home is first thing seen by potential homebuyers, so keeping it presentable is a must.

6. Don't get too personal - Get rid of excess clutter such as newspapers, magazines, and mail. Be sure to put away your laundry and shoes. It's also not a bad idea to put away other personal belongings like pictures on the refrigerator or mantle. This will make it easier to the potential homebuyer to imagine their personal items scattered about.

7. Take care of repairs -- Save yourself some time and potential trouble by making repairs BEFORE you list your home. The repairs will have to be made anyway, so it is better to get them out of the way sooner rather than later.

First impressions can make the difference between a sale or no sale. Keeping things simple can give you a leg up on similar houses ion the market.

Source: msn.com/real estate

TEXAS TOP "MOVE-TO" STATE

For the fifth straight year, more people chose to settle "deep in the heart of Texas" than anywhere in the United States in 2009. This is according to Allied Van Lines' 42nd Annual Magnet States Report. Texas was the No. 1 destination state based on Allied's report which tracks U.S. migration patterns and tabulates net relocation gains for each state on an annual basis. "Texas seems to be the cheap seats but with a great view," says Bill Jones, chairman of the Texas Association of Realtors. "Just 20 years ago, our wonderful state wasn't the first choice for many people. But now folks from all over are noticing we have everything you could possibly want - from reasonably priced housing, to plenty of land for business and housing development, to a wide variety of fine arts and recreational opportunity."

Arizona was the second most moved-to state in 2009, followed closely by North Carolina, Colorado and Flora placed fourth and fifth for states with the larget net relocation gaines last year.

Soutce: Allied Van Lines as reported by Texas Association of Realtors